Working Paper: NBER ID: w31560
Authors: Victor Lavy; Yeshaya Nussbaum
Abstract: Does the intellectual endowment of children affect parents’ fertility choices? The quantity-quality model of fertility predicts that a positive (negative) shock to child endowment increases (decreases) parental demand for children. We test these predictions using Israeli data on intellectually gifted and intellectually disabled children. Because families with an exceptional-endowment child differ from those without, we propose quasi-experiments that exploit differences in the child’s birth order to estimate the effect of her birth on further fertility. We find that the birth of a gifted child increases family size. However, parents must recognize the endowment’s exceptionality for it to have an effect. Similarly, the birth of an intellectually disabled child negatively affects family size, but only when the child is of high birth order. Our results point to child endowment as an important factor in determining fertility choices.
Keywords: Child Endowment; Fertility Choices; Quantity-Quality Model; Intellectual Giftedness; Quasi-Experiments
JEL Codes: I0; J10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Birth of a gifted child (D29) | Increased probability of parents having additional children (J13) |
| Birth of an intellectually disabled child (J13) | Decreased likelihood of having a fourth child (J13) |
| Birth of a gifted child (D29) | Demand for children (J13) |
| Birth of an intellectually disabled child (J13) | Family size (J12) |